RETAIL OPPORTUNITY INVESTMEN (ROIC) Stock Fundamental Analysis
NASDAQ:ROIC - Nasdaq - US76131N1019 - REIT - Currency: USD
ROIC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 130 industry peers in the Diversified REITs industry. ROIC has an excellent profitability rating, but there are concerns on its financial health. ROIC does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
In the past year ROIC was profitable.
In the past year ROIC had a positive cash flow from operations.
In the past 5 years ROIC has always been profitable.
Each year in the past 5 years ROIC had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.92%, ROIC is doing good in the industry, outperforming 69.84% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.47%, ROIC is in the better half of the industry, outperforming 68.25% of the companies in the same industry.
ROIC has a Return On Invested Capital (3.10%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for ROIC is in line with the industry average of 3.16%.
The 3 year average ROIC (2.80%) for ROIC is below the current ROIC(3.10%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.47% | ||
| ROIC | 3.1% |
ROA(3y)1.56%
ROA(5y)1.49%
ROE(3y)3.6%
ROE(5y)3.51%
ROIC(3y)2.8%
ROIC(5y)2.77%
1.3 Margins
ROIC has a better Profit Margin (17.24%) than 72.22% of its industry peers.
ROIC's Profit Margin has declined in the last couple of years.
ROIC's Operating Margin of 34.07% is fine compared to the rest of the industry. ROIC outperforms 71.43% of its industry peers.
In the last couple of years the Operating Margin of ROIC has remained more or less at the same level.
ROIC's Gross Margin of 82.88% is amongst the best of the industry. ROIC outperforms 83.33% of its industry peers.
In the last couple of years the Gross Margin of ROIC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.07% | ||
| PM (TTM) | 17.24% | ||
| GM | 82.88% |
OM growth 3Y0.29%
OM growth 5Y-0.84%
PM growth 3Y-2.53%
PM growth 5Y-6.17%
GM growth 3Y-0.94%
GM growth 5Y-0.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ROIC is destroying value.
The number of shares outstanding for ROIC has been increased compared to 1 year ago.
Compared to 5 years ago, ROIC has more shares outstanding
ROIC has a better debt/assets ratio than last year.
2.2 Solvency
ROIC has an Altman-Z score of 0.86. This is a bad value and indicates that ROIC is not financially healthy and even has some risk of bankruptcy.
ROIC has a better Altman-Z score (0.86) than 65.87% of its industry peers.
ROIC has a debt to FCF ratio of 565.81. This is a negative value and a sign of low solvency as ROIC would need 565.81 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 565.81, ROIC is in line with its industry, outperforming 46.03% of the companies in the same industry.
ROIC has a Debt/Equity ratio of 1.09. This is a high value indicating a heavy dependency on external financing.
ROIC has a Debt to Equity ratio (1.09) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.44
WACC7.02%
2.3 Liquidity
ROIC has a Current Ratio of 1.41. This is a normal value and indicates that ROIC is financially healthy and should not expect problems in meeting its short term obligations.
ROIC's Current ratio of 1.41 is in line compared to the rest of the industry. ROIC outperforms 59.52% of its industry peers.
A Quick Ratio of 1.41 indicates that ROIC should not have too much problems paying its short term obligations.
ROIC has a Quick ratio of 1.41. This is in the better half of the industry: ROIC outperforms 62.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for ROIC have decreased strongly by -13.79% in the last year.
The Earnings Per Share has been decreasing by -2.73% on average over the past years.
Looking at the last year, ROIC shows a small growth in Revenue. The Revenue has grown by 4.18% in the last year.
The Revenue has been growing slightly by 2.07% on average over the past years.
EPS 1Y (TTM)-13.79%
EPS 3Y-1.2%
EPS 5Y-2.73%
EPS Q2Q%-42.86%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y4.88%
Revenue growth 5Y2.07%
Sales Q2Q%2.13%
3.2 Future
Based on estimates for the next years, ROIC will show a small growth in Earnings Per Share. The EPS will grow by 7.99% on average per year.
The Revenue is expected to grow by 1.84% on average over the next years.
EPS Next Y73.78%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
EPS Next 5Y7.99%
Revenue Next Year4.36%
Revenue Next 2Y2.65%
Revenue Next 3Y2.38%
Revenue Next 5Y1.84%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 69.96, which means the current valuation is very expensive for ROIC.
Compared to the rest of the industry, the Price/Earnings ratio of ROIC is on the same level as its industry peers.
ROIC's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.48.
With a Price/Forward Earnings ratio of 60.17, ROIC can be considered very expensive at the moment.
ROIC's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.52, ROIC is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.96 | ||
| Fwd PE | 60.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ROIC is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ROIC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 894.73 | ||
| EV/EBITDA | 16.29 |
4.3 Compensation for Growth
ROIC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ROIC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y3.76%
EPS Next 3Y6.53%
5. Dividend
5.1 Amount
ROIC has a Yearly Dividend Yield of 3.43%.
Compared to an average industry Dividend Yield of 6.44, ROIC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, ROIC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
The dividend of ROIC decreases each year by -10.38%.
ROIC has been paying a dividend for at least 10 years, so it has a reliable track record.
ROIC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.38%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
ROIC pays out 131.94% of its income as dividend. This is not a sustainable payout ratio.
DP131.94%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
17.49
0 (0%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryDiversified REITs
Earnings (Last)
Earnings (Next)
Inst Owners97.95%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner Change-36.57%
Market Cap2.24B
Analysts50.91
Price Target16.7 (-4.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
Yearly Dividend0.45
Dividend Growth(5Y)-10.38%
DP131.94%
Div Incr Years3
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.39%
Min EPS beat(2)-39.67%
Max EPS beat(2)-7.12%
EPS beat(4)1
Avg EPS beat(4)-5.39%
Min EPS beat(4)-39.67%
Max EPS beat(4)32.35%
EPS beat(8)2
Avg EPS beat(8)-6.5%
EPS beat(12)5
Avg EPS beat(12)4.15%
EPS beat(16)9
Avg EPS beat(16)31.8%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)0.76%
Revenue beat(4)2
Avg Revenue beat(4)1.72%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)6.93%
Revenue beat(8)4
Avg Revenue beat(8)0.53%
Revenue beat(12)6
Avg Revenue beat(12)0.65%
Revenue beat(16)8
Avg Revenue beat(16)0.7%
PT rev (1m)0%
PT rev (3m)-1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)31.43%
EPS NY rev (3m)21.05%
Revenue NQ rev (1m)-1%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 69.96 | ||
| Fwd PE | 60.17 | ||
| P/S | 6.64 | ||
| P/FCF | 894.73 | ||
| P/OCF | 15.43 | ||
| P/B | 1.72 | ||
| P/tB | 1.78 | ||
| EV/EBITDA | 16.29 |
EPS(TTM)0.25
EY1.43%
EPS(NY)0.29
Fwd EY1.66%
FCF(TTM)0.02
FCFY0.11%
OCF(TTM)1.13
OCFY6.48%
SpS2.64
BVpS10.15
TBVpS9.82
PEG (NY)0.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.92% | ||
| ROE | 4.47% | ||
| ROCE | 3.92% | ||
| ROIC | 3.1% | ||
| ROICexc | 3.16% | ||
| ROICexgc | 3.21% | ||
| OM | 34.07% | ||
| PM (TTM) | 17.24% | ||
| GM | 82.88% | ||
| FCFM | 0.74% |
ROA(3y)1.56%
ROA(5y)1.49%
ROE(3y)3.6%
ROE(5y)3.51%
ROIC(3y)2.8%
ROIC(5y)2.77%
ROICexc(3y)2.81%
ROICexc(5y)2.78%
ROICexgc(3y)2.86%
ROICexgc(5y)2.83%
ROCE(3y)3.55%
ROCE(5y)3.51%
ROICexcg growth 3Y4.14%
ROICexcg growth 5Y1.52%
ROICexc growth 3Y4.44%
ROICexc growth 5Y1.76%
OM growth 3Y0.29%
OM growth 5Y-0.84%
PM growth 3Y-2.53%
PM growth 5Y-6.17%
GM growth 3Y-0.94%
GM growth 5Y-0.47%
F-Score6
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 565.81 | ||
| Debt/EBITDA | 6.42 | ||
| Cap/Depr | 135% | ||
| Cap/Sales | 42.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.79% | ||
| Profit Quality | 4.3% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 0.86 |
F-Score6
WACC7.02%
ROIC/WACC0.44
Cap/Depr(3y)145.7%
Cap/Depr(5y)104.48%
Cap/Sales(3y)46.5%
Cap/Sales(5y)33.64%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-13.79%
EPS 3Y-1.2%
EPS 5Y-2.73%
EPS Q2Q%-42.86%
EPS Next Y73.78%
EPS Next 2Y3.76%
EPS Next 3Y6.53%
EPS Next 5Y7.99%
Revenue 1Y (TTM)4.18%
Revenue growth 3Y4.88%
Revenue growth 5Y2.07%
Sales Q2Q%2.13%
Revenue Next Year4.36%
Revenue Next 2Y2.65%
Revenue Next 3Y2.38%
Revenue Next 5Y1.84%
EBIT growth 1Y6.57%
EBIT growth 3Y5.18%
EBIT growth 5Y1.22%
EBIT Next Year98.32%
EBIT Next 3Y27.23%
EBIT Next 5Y20.38%
FCF growth 1Y102.09%
FCF growth 3Y2.72%
FCF growth 5Y9.65%
OCF growth 1Y-6%
OCF growth 3Y11.39%
OCF growth 5Y2.41%